| Summary: | 碩士 === 國立中央大學 === 經濟學系 === 106 === In recent years, the textile industry is under the pressure from sustainability issues, and there are new technologies that make fibers more non-toxic, less polluting and biodegradable, or technologies that recycle waste. This study uses two-period durability oligopoly model to capture the firm’s behavior and social welfare of textile industry under the circular economy. We suppose that a single traditional firm in the initial period and depending on the firm’s chosen product durability, a firm which manufacturing environmentally friendly products joins the market in period two. We find that the entry of environmentally friendly products does not necessarily increase social welfare. In addition, we analyzed the fast fashion market and the market with durable products. We find that when consumers are willing to pay a high premium for products, firm prefer to produces products with lower product life, and the problem of planning waste will be more serious. When the premium is high enough, it will tend to be the firm under fast fashion market. It has also been found that the social welfare of the fast fashion market is lower than the social welfare of the product durability market.
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